A Property Development Mortgage Can Work Out Cheaper If Taken Through A Broker

| Posted: 13-02-2008 | Comments: 0 | Views: 3 | Rating: (50)

(?)

A property development mortgage can be found a lot cheaper if you take it through a broker. A broker will have the knowledge of where to look to find you the cheapest rate of interest and best deal possible based on your specific circumstances. There are no fixed rates; a development mortgage is based on the circumstances of each individual. Factors that are taken into account when deciding the rate for your particular loan are the experience you have in property development and what you are intending to do with the loan.

Based on your circumstances you could expect to pay a rate of interest between 1.5% and 2.5% and of course the Bank of England base rate. A broker will always be able to match you with lenders who can offer the cheapest rates if you work with them. They are able to search the whole of the UK market place if this is necessary but usually through experience they will have an idea of which lenders can get you the best deal.

As for the majority of time a property development mortgage will be taken out for hundreds of thousands of pounds, the lender will offer the mortgage on an interest only basis. This means that you repay only the interest that accumulates on the amount you borrowed. However after the term has ended you then have to find the money to repay the total capitol left. The advantage of the interest only mortgage is that the monthly repayments will be smaller than had you taken out a repayment mortgage. Should you choose to take a repayment mortgage then the advantage is that you will pay off a little of both the capitol borrowed and the interest that accumulates on it. When you have repaid the mortgage over the term then you will be left owing nothing. A mortgage can be taken out from 1 year to 30 plus years if the project is a considerable one.

The amount the majority of lenders will allow you to borrow is based on the loan to project costs; these take into account the gross property development values. In the majority of cases lenders will loan you around 70% to 75% of the building costs and purchase price. Those who are very experienced when it comes to property development could get a mortgage for 100% but the criteria for this are very strict.

A property development mortgage needs to be given some serious consideration. A specialist will be able to find you the best deal that comes with the cheapest rate based on your individual circumstances. However it is down to the individual to make sure they have read the terms and conditions. Hidden costs can be included in these and they can add quite a lot onto the cost of the mortgage. You can find information relating to property development and mortgages on a specialist website. You should use this information to learn all you can before signing on the bottom line and taking on what is a huge responsibility financially.

Rate this Article:

Current: 0 / 5 stars - 0 vote(s).

Article Tags: Mortgage Advice

Article Source: http://www.articlesbase.com/finance-articles/a-property-development-mortgage-can-work-out-cheaper-if-taken-through-a-broker-332184.html

Print article

Send to friend

Publish this Article

Author feedback

About the Author:
Sean Horton is a Director of Enhanced Wealth, a whole of market mortgage broker and IFA specialising in mortgage advice and the associated areas of income protection, mortgage protection, mortgage life cover and Property development mortgages .

Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free!

Article Comments

Add new Comment

Mias Calls On Mortgage Lenders To Fix Their Exit Fees
By: Mr Hanna | 27/05/2006 | Mortgage

Getting a Mortgage From the Biggest Liar
By: Dan Harris | 11/01/2008 | Mortgage

By: | 31/12/1969 |

Take The Advice Of A Broker When Looking For Business Property Mortgages
By: Sean Horton | 12/02/2008 | Finance
Free Finance articles for use on your Finance related website. Find articles of the subject of Finance

Real Estate Development Finance Found Cheaper When Bought Online
By: Sean Horton | 15/02/2008 | Real Estate

Comprehensive Guide Exploring UK Mortgages
By: Aaron Hill | 07/05/2008 | Mortgage

What Are Semi Commercial Mortgages and Are They Right For You?
By: Sean Horton | 02/09/2008 | Finance
Free Finance articles for use on your Finance related website. Find articles of the subject of Finance

More Canadians Purchasing Second Homes
By: The House Team Of Mortgage Intelligence | 17/10/2006 | Mortgage

Got a Question? Ask.

Ask the community a question about this article:

Q&A Powered by:

Latest Finance Articles

Retirement Income Investing and Your Portfolio
By: Steve Selengut | 07/10/2008
Brokerage firm monthly statements are designed to promote either fear or greed, depending on the current market environment. Nowhere on your statement can you find numbers that report your net investment, your total working capital, or your true asset allocation. Current and projected income numbers are given little attention

Buy to Let Investors Get a Boost
By: Parmdeep Vadesha | 06/10/2008
Buy to let UK investors are in a prime position to take advantage of a new government plan to spur property market activity. The scheme aims to permit property buyers to buy properties worth up to

How to Buy a Repossessed Property for Below Market Value
By: Parmdeep Vadesha | 06/10/2008
Buying a repossessed property is what matters for investors who are keen on reaping high profits. But even with the advantages it poses, there are certain aspects you need to be aware of before you start on the task of acquiring your next property cheaply.

Brits Should Ensure They Have the Cheapest Energy Supplier
By: Abbi Rouse | 06/10/2008
With energy prices escalating steadily, consumers could knock considerable amounts off their utility bills by switching from their areas default supplier.

How to Analyze Commercial Properties
By: Lorenzo Hills | 06/10/2008
Financing commercial properties or income-producing real estate is not an exact science. It requires subjective analysis, experience, and an ability to be innovative and creative.

Is There Really Such a Thing as Free Student Credit Cards?
By: Sean Masterson | 06/10/2008
Looking for free student credit cards? Some insist they don't exist. Don't believe them. You can find them, you just need to know how to play the game...

Retirement Account Rollovers, What Are My Options?
By: James Steele | 06/10/2008
Great info on IRA and 401k changes.

IRA vs 401k Plans and What to Consider
By: James Steele | 06/10/2008
Great info on retirement accounts.

More from Sean Horton

Commercial Bridging Loans Maybe the Answer
By: Sean Horton | 09/09/2008 | Finance
In commerce, when situations requiring cash rapidly occurs, looking at commercial bridging loans could be the best answer. Whether it is funds to bridge a deal or money for a property purchase or some urgent business acquisitions, securing a short-term loan may resolve the problem, especially when time is...

What is Involved in Taking Out a Commercial Mortgage?
By: Sean Horton | 02/09/2008 | Finance
Commercial mortgages are as the name suggests, mortgages for the commercial sector. They are a form of long-term finance and can be used for the purchase of land and/or property for business use plus to buy a going concern. This could be anything from a hotel to a...

What Are Semi Commercial Mortgages and Are They Right For You?
By: Sean Horton | 02/09/2008 | Finance
Have you always fancied being able to live and work from the same property? Perhaps using part of your home as a guesthouse or providing bed and breakfast? Maybe you would like to open a shop or tearooms, operate a kennel or cattery business or have a business...

Obtaining Property Development Finance
By: Sean Horton | 02/09/2008 | Finance
Whether undertaking a small-scale refurbishment or building a new multi-million pound complex, if the developer does not have all the money to fund the project, then the balance required could be obtained through one or more lenders. Traditionally, high street banks were used but invariably would only agree 50/50...

What is Involved When Seeking Commercial Mortgages UK?
By: Sean Horton | 02/09/2008 | Finance
You may be looking at buying a building or land for business purposes. A number of lenders in the UK could provide you with an excellent deal for such a venture. The problem faced by most people is finding that perfect deal. Employing the services of an...

Using the Service Provided by Commercial Mortgage Brokers Could Make Obtaining Finances Easier For Your Business
By: Sean Horton | 02/09/2008 | Finance
Seeking a commercial mortgage can be time consuming and difficult. It can be quite a responsibility making sure that you have acquired the most suitable deal and achieved the best terms possible for your business. Surely, anything, or anyone, that can make this task easier does have to...

Choosing From the World of Commercial Loans
By: Sean Horton | 02/09/2008 | Finance
Any type of loan that is granted to someone in the business sector is collectively known as commercial loans. It could be a mortgage, a bridging loan, part of a finance deal for property development, or even an overdraft facility. Invariably, the type of loan has the prefix...

Could Bridging Loans Be The Answer To Your Cash Flow Problems?
By: Sean Horton | 02/09/2008 | Finance
Obtaining bridging loans is normally the result of needing to raise finance quickly and over a short period. Most people associate bridging loans with house buying. When either a homebuyer has found their ideal home but have not sold their existing property and rather than lose their dream home, take...

Article Categories

Article Marketing

Article Notepad

Stop Duplicate Content

Term Papers

Need Help?

Sign up for our email newsletter

Receive updates, enter your email below

Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2008 Free Articles by ArticlesBase.com, All rights reserved. (0.39, 16)

A Property Development Mortgage Can Work Out Cheaper If Taken Through A Broker

Article Comments

Related Articles

Got a Question? Ask.

Latest Finance Articles

More from Sean Horton

Need Help?

Site Links

Webmasters

Business Info

Sign up for our email newsletter